404363345v3 BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

_____________________________________________ )

Application of )

)

YANGTZE RIVER EXPRESS AIRLINES CO., LTD. )

) Docket No. OST

- 2006

- 24629

For exemption authority under 49 U.S.C. §40109 ) OST

- 2006

- 24630

)

(China

- U.S. Scheduled Cargo Service) )

_____________________________________________)

APPLICATION OF YANGTZE RIVER EXPRESS AIRLINES CO., LTD.

FOR EXEMPTION AUTHORITY

Communications with respect to this document should be addressed to:

February 2 1 , 2014 Josh Romanow

Peter Nelson

PILLSBURY WINTHROP

SHAW PITTMAN LLP

2300 N Street, N.W.

Washington, D.C. 20037

Tel: (202) 663

- 8000

Fax: (202) 663

- 8007

E

- mail: romanow@pillsburylaw.com

peter.nelson @pillsburylaw.com

Counsel for Yangtze River Express

Airlines Co., Ltd.

NOTE: Any person who wishes to support or oppose this Application may file an answer

a nd serve th at answer on counsel identified above and all persons served with a copy of this

application. Answers to the exemption application are due on March 8 , 2014

. Yangtze

intends to poll on this application and will advise the Department of the results.404363345v3 BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

_____________________________________________ )

Application of )

)

YANGTZE RIVER EXPRESS AIRLINES CO., LTD. )

) Docket No. OST

- 2006

- 24629

For exemption authority under 49 U.S.C. §40109 ) OST

- 2006

- 24630

)

(China

- U.S. Scheduled Cargo Service) )

_____________________________________________)

APPLICATION OF YANGTZE RIVER EXPRESS AIRLINES CO., LTD.

FOR E XEMPTION AUTHORITY

Yangtze River Express Airlines Co., Ltd. (“Yangtze”) , a cargo air carrier of the People’s

Republic of China

, hereby requests exemption authority to engage in scheduled foreign air

transportation of property and mail between from any point or points in the People’s Republic of

China, via any intermediate points, to a ny point or points in the United States open to scheduled

international operations, and beyond to any points outside the United States.

In support of this Application, Yangtze states as follows:

1. Yangtze will initially operate scheduled all

- cargo flights on the following routing:

Shanghai, China (PVG)

– Anchorage (ANC) (technical stop)

– Chicago (ORD)

Frankfurt

- Hahn (HHN)

– Tia n jin, China (TSN)

– Shanghai, China (PVG). Yangtze will

operate these flights using B oeing 747

- F aircraft

.

2. Approval of this application would be consistent with the Air Transport Agreement

between the United States and the People’s Republic of China dated September 17, 1980,

as amended, and Department precedent. ( See Jade Cargo, Notice of Action Taken dated

January 7, 2 011

. )404363345v3 3. A translated copy of Yangtze ’ s o perating a uthority issued by the Civil Aviation

Administration of China (“CAAC”) to conduct the proposed scheduled flights is attached

hereto as Exhibit A

.

4. An estimate showing the total traffic and the financial results of the proposed PVG

- ANC

ORD

- HHN

- TSN

- PVG scheduled service f or the first full year of operations is attached as

Exhibit B

.

5. Grant of the authority sought herein will not result in a near

- term increase in fuel

consumption of ten million gallons or more, and therefore will not comprise a “major

regulatory action” under the Energy Policy and Conservation Act of 1975, as defined at

14 C.F.R. § 313(a)(1).

6. The verification required by 14 C.F.R. 302.4(b) is attached hereto as Exhibit C

.

Yangtze is fully qualified to operate the services for which authority is here in requested,

and grant of the authority will serve the public interest. Yangtze ask s that the requested

exemption remain in place for one year

.404363345v3 WHEREFORE, based upon the foregoing information, Yangtze respectfully requests that

it be granted an exemption to engage in scheduled foreign air transportation of property and mai l

as more fully descri bed above

.

Respectfully submitted,

Josh Romanow

Peter Nelson

PILLSBURY WINTHROP

SHAW PITTMAN LLP

2300 N Street, NW

Washington, DC 20037

Phone: (202) 663

- 8000

Fax: (202) 663

- 8007

Email: romanow@pillsburylaw.com

peter.nelson@pillsburylaw.com

February 2 1

, 2014 Counsel for Yangtze River Express Airlines Co., Ltd.404363345v3 CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing application of Yangtze River Express Airlines Co., Ltd.

for an amended foreign air carrier permit and exem ption has been served this the 2 1 st day of

February, 2014 , upon each of the parties below by electronic mail.

David Henthorn

International Aviation Safety Inspector

Federal Aviation Administration

david.e.henthorn@faa.gov

Sascha Vanderbellen

Delta Air Lines, Inc.

sascha.vanderbellen@delta.com

Robert Wirick

Francis Heil

American Airlines, Inc.

robert.wirick@aa.com

francis.heil@aa.com

Bailey Leopard

Nancy Sparks

Federal Express Corporation

gbleopard@fedex.com

nssparks@fedex.com

Kevin P. Montgomery

Polar Air Car go, Inc.

Kevin.montgomergy@polaraircargo.com

Russell E. Pommer

Atlas Air Inc.

rpommer@atlasair.com

Anita Mosner

Jennifer Nowak

Counsel for United Parce l Service Co

Holland & Knight

anita.mosner@hklaw.com

jennifer.nowak@hklaw.com Malcolm L. Benge

Counsel for North American

Airlines/World Airways

Zuckert Scoutt & Rasenberger, L.L.P.

mlbenge@zsrlaw.com

Dan Weiss

Continental Airlines

dan.weiss@coair.com

Steve Morrissey

Counsel for United Air Lines

steve. morrissey@united.com

Howard Kass

U.S. Airways

howard.kass@usairways.com

Robert Silverberg

Jeff Johnson

Counsel for ABX Air, Inc.

Silverberg, Goldman & Bikoff, LLP

rsilverberg@sgbdc.com

jjohnson@sgbdc.com

Mark W. Atwood

Counsel for Kalitta Air

Cozen O’Connor

matwood@cozen.com

/s/ Melinda A. Hernandez

Melinda A. Hernandez404363345v3 

### TABLE OF EXHIBITS

Exhibit A Operating Authority from CAAC

Exhibit B Traffic Projections and Financial Forecast

Exhibit C Verification404363345v3 

### Exhibit A

Op erating Authority from CAAC

(Attached)404363345v3404363345v3 The translation of t he approval from CAAC will be listed as follow:



### Civil Aviation Administration of China

CAAC NO. [201 4 ] 17



### Permission of PVG

- ANC

- ORD

- HHN

- TSN

- PVG ALL Cargo Route

Yangtze River Express Airlines Co., Ltd,:

Civil Aviation Administration of China has discussed your application of 《 Application of

becoming to the Designated Cargo Carrier of PVG

- ANC

- ORD

- HHN

- TSN

- PVG 》

(Yangtze River Express Airlines [201 4 ] 18 ).

According to the transport agreements and protocol bet ween Chinese and the United

States governments

, the transport agreements and protocol between Chinese and

Germany governments

, CAAC a pprove s your applicat ion of operat ing all cargo route

PVG

- ANC

- ORD

- HHN

- TSN

- PVG , and exercising the fifth freedom traffic rights in ORD

HHN

. Please apply the flight schedule based on the rules, and operate this route based on the

approved operation dates, frequency and transport capability.

This permission takes effect from the date this permission is issued, and is valid until

further notice.

Civil Aviation Administration of China

February 1 7 , 20 1 4

( Seal of CAAC )404363345v3 

### Exhibit B

Traffic Projections and Financial Forecast

Flight Route Flight Leg Cargo

weight

(KG) Rates

(All

- in)

(US$) Income

(single

flight)

(US$000) Income

(year)

(US $ 000) Profit/loss

(year)

US$000)

PVG

- ANC

- ORD

- HHN

TSN

- PVG

( 3 flights per week) PVG

- ORD 105000 5.8 915.60 109,872.00 133.83

ORD

- HHN 100000 1.5

ORD

- TSN 80000 1.62

ORD

- PVG 20000 1.35404363345v3 

### Exhibit C